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Fannie Paid Little for Its Audits

When it comes to audits, here is a lesson that investors and corporate directors everywhere can take away from Fannie Mae's recent woes: You get what you pay for.

In the case of Fannie, which two weeks ago was accused by its chief regulator of improper accounting, its payments have been relatively small. For 2001, the government-chartered mortgage giant paid its outside auditor, KPMG LLP, $1.4 million to audit its financial...